Exxon funds Liza Phase 2 development offshore Guyana

FILE PHOTO: An Exxon gas station is seen in Houston, Texas, U.S., April 30, 2019. REUTERS/Loren Elliott

(Reuters) - Exxon Mobil Corp said on Friday it has funded the Liza Phase 2 development offshore Guyana after it received government and regulatory approvals.

Exxon has been investing heavily in its U.S. shale operations and in Guyana, which has become the focus of intense interest since the company announced the discovery of over 5 billion barrels of oil and gas off its shores.

The company said on Friday the Phase 2 startup, which is expected in mid-2022, will produce up to 220,000 barrels of oil per day (bpd).

Hess Guyana Exploration Ltd, which holds a 30 percent interest in the development, and Exxon said Liza Phase 1 remains on track to achieve first oil by the first quarter of 2020.

The Liza Phase 2 is expected to cost $6 billion, the companies said in separate statements.

A final investment decision is expected later this year for a third phase of development, Payara, which is expected to produce between 180,000 and 220,000 barrels per day with startup as early as 2023, the companies said.